India is a key country for our regional strategy: Ivanhoe Cambridge MD

India is a key country for our regional strategy as we aim at steady growth in the Asia-Pacific region, says Chanakya Chakravarthi, MD, Ivanhoe Cambridge

Recently, Ivanhoe Cambridge, the real estate subsidiary of Canada’s second-largest pension fund Caisse de depot et placement du Quebec (CDPQ) and Singaporean investor Mapletree announced a Rs 15,400-crore partnership to develop, own, and operate technology-focused office spaces in the country. Chanakya Chakravarti, managing director, India, Asia-Pacific, of Ivanhoe, in conversation with Raghavendra Kamath, talks about the investor’s new ventures and strategy for the Indian market. Edited excerpts:

With delay in the introduction of the Development of Enterprises and Services Hub (DESH) Bill, a slowdown in hiring in India, and changes in real estate investment trust (REIT) taxes, analysts say the office market may face challenges in the short term.

We believe that the long-term trends for technology and innovation-focused workplaces remain intact. With the development of secondary capital markets, the increase in long-term private investment capital, and continued growth of global capability centres, workplaces in India are increasingly becoming an extension of corporate headquarters for business activities for global and Indian multinationals across businesses/sectors, leading to an increase in institutional ownership.

What are your plans for the Indian market in 2023? Which asset classes are you looking to invest in? 

We remain committed to our partnerships, innovation-led workplaces, and institutional-grade warehousing parks. We continue to study medium- to long-term economic and urbanisation trends to identify new investment themes.

With recession in the West, how do you look at India as an investment destination?

India is a key country for our regional strategy as we aim at steady growth in the Asia-Pacific region. For instance, we recently announced a strategic partnership with Mapletree to launch a new investment platform to develop, own, and operate technology sector-focused workplaces in India with an investment capacity of over CAD (Canadian dollar) 2.5 billion (Rs 15,400 crore).

How is the logistics platform with Lodha and Bain Capital progressing?

It is progressing as envisaged in the business plan.

Heard you are doing asset deals with Embassy Group and shelved the platform deal with it as the alternative investment fund structure is not tax-efficient for you.

We have shelved the platform deal with Embassy for business reasons mutually agreed on. Our decision is by no means related to tax efficiencies.  

Will you explore the REIT and infrastructure investment trust market in the future in India?

We continually evaluate various investment avenues to access Indian real estate, including the publicly traded REITs, and believe the development of these secondary avenues is an important milestone in the evolution of the Indian market into a more formal, transparent, and liquid marketplace for institutional capital.

Will you be able to maintain returns in the Indian market this year, given talks of an economic slowdown?

We do not comment on returns for individual markets.

Are you looking to tweak deal sizes and the investment horizon due to the current economic environment?

We do not comment on business plan considerations for proprietary reasons.